Supermarket Prices Are Dropping like Never Before
If you cook often, you might have noticed the total on your grocery store receipt falling lately. Food prices have dropped over the past nine months, something that hasn’t happened since the recession, and before that, since 1960, Bloomberg reports. A dozen eggs in some parts of the country are going for as little as 99 cents.
“The severity of what we’re seeing is completely unprecedented. We’ve never seen deflation this sharp,” Scott Mushkin, an analyst who’s studied supermarket data for a decade, tells Bloomberg.
The low prices are being attributed to a few factors including low grain and fuel prices but also intense competition among grocery stores—both physical and online, as companies like Amazon continue to grow their grocery offerings and FreshDirect starts in on a national expansion.
Though the prices have been good for consumers, retailers are starting to struggle, cutting down their profits to stay competitive.
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